Time for fair go for freight

The Tasmanian Freight Equalisation Scheme, first announced by Gough Whitlam on 25 March 1976, was designed to bridge the geographical gap between Tasmania and the mainland by providing financial assistance to freight-disadvantaged producers. 

Originally described as a scheme to equalise freight costs as if there were a land bridge between Tasmania and the mainland, the subsidy was calculated as the difference between the cost of sea freight and transport across a bridge. 

Today, many Tasmanians view Bass Strait as part of Australia's national transport network, expecting it to be seamlessly integrated into the national highway system.  

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However, the reality is different: Tasmania remains inadequately connected, and the current scheme lacks legislative indexation, relying instead on ministerial direction. This often results in neglect until the next crisis arises. 

There is an urgent need to update the scheme to ensure it effectively supports Tasmanian farmers and places them on an equal footing with their mainland counterparts regarding freight costs. A comprehensive review must accurately assess the true financial burden on producers and adjust the subsidy accordingly. 

A fair playing field in interstate freight costs is essential, but it is equally important to consider the scheme's economic benefits. The offset plays a crucial role in stimulating Tasmania’s economy and enhancing its competitive edge. Future adjustments must enable Tasmanian agriculture to compete more effectively, leverage Tasmania’s brand advantage, and create new investment opportunities on the island. 

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TasFarmers advocates not just for an increase in the offset but for a thorough review of the scheme's operations to ensure it delivers tangible benefits to Tasmanians.  

Canberra has never fully committed to a cohesive national highway policy that included Tasmania. When Tasmania is not being left off the map and overlooked entirely, the freight offset often becomes a target for budget cuts, undermining the national commitment to a comprehensive transport network that includes our island state. 

A refreshed and robust Tasmanian Freight Equalisation Scheme is vital for maintaining fair competition, connecting our federation and supporting Tasmania’s economic growth. 
 
As Gough Whitlam said, "It’s time".  We congratulate Senator Tammy Tyrel and welcome the timely establishment of a select committee inquiry. What we need now is a renewed commitment from the federal government to address this issue comprehensively and ensure that Tasmania is not left behind in the national transport framework.